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FCC Proposes Revisiting Broadband Data Cap Regulation

Federal Communications Commission (FCC) Chair Jessica Rosenworcel has proposed a thorough investigation of broadband internet data caps and their impact on consumers. To aid in this investigation, the FCC has introduced a portal where the public can submit their comments on how data caps have affected them. Data caps are limits on the amount of internet data a customer can use before facing additional charges or experiencing slowed service.

The FCC specifically wants to hear about the effects of data caps on individuals with disabilities, low-income consumers, and historically disadvantaged communities. They are also interested in understanding how data caps affect education, access to public safety services, and more.

During the COVID-19 pandemic, many internet service providers (ISPs) temporarily suspended data caps due to the need for people to stay connected for work, education, and personal reasons. However, as the pandemic continued, companies started reinstating data caps. Nevertheless, public and government opposition has prevented a complete return to pre-pandemic data limits.

Rosenworcel is urging the FCC to support her proposal, emphasizing that internet access is essential for everyone, everywhere. However, before the FCC can regulate data caps, they must determine if they have the necessary authority to do so.

Currently, the FCC’s deadlock could hinder any actions regarding data caps, as their partisan split has already prevented them from imposing fines on wireless companies for unlawfully selling customer location data. Currently, major companies that enforce data limits typically charge extra after a customer surpasses a terabyte of monthly usage.

For instance, AT&T offers plans starting at $55 per month for a 25Gbps plan, increasing to $65 per month after one year. They also charge an additional $10 for every extra 50GB used, unless customers choose to upgrade to an unlimited plan for $30 per month. Cox internet has similar pricing, with plans starting at $50 per month for a 100Gbps or 200Gbps plan. They have a small 5Gbps upload speed and a 1.25TB monthly limit, charging an extra $10 for every 50GB over the limit.

These complex pricing structures can be overwhelming, particularly when considering the additional fees that ISPs often add to bills. Exceeding a terabyte-plus data limit is not difficult, especially for frequent streamers or users of high-end game consoles, where new games can exceed 100GB in size. This can lead to additional charges of up to $100 in just a few days, especially for households with multiple users and subscriptions to services like Disney Plus.

 

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